Ringgit extends gains as govt initiatives, US-Japan trade deal lift sentiment
The local currency was also supported by optimism following the US-Japan trade deal which boosted Asian equity and foreign exchange markets across the board.
At 6 pm, the ringgit rose to 4.2255/2300 versus the greenback compared with Tuesday's close of 4.2300/2370.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim unveiled a new round of fiscal support measures aimed at alleviating living costs, stimulating domestic consumption and boosting household spending ahead of the upcoming National Day and Malaysia Day celebrations.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the one-off RM100 cash aid for Malaysians aged 18 and above, given through MyKad under the RM2 billion Sumbangan Asas Rahmah (SARA) programme, would help support economic growth in the second half of 2025.
"In a way, it's like a mini fiscal stimulus at a time when external uncertainties have become apparent. Such proactive move bodes well for the ringgit in the near term,' he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit was supported by regional tailwinds after US President Donald Trump struck a "massive' trade deal with Japan on Tuesday, which included cutting US tariff on the latter to 15 per cent from 25 per cent.
Innes noted that the deal has boosted market optimism which lifted stocks and Asian currencies including the ringgit.
"There is growing speculation that if Japan could secure softer terms, Malaysia might also seek similar concessions before the Aug 1 deadline,' he added.
However, the ringgit was weaker against a basket of other major currencies at the close.
It slipped versus the Japanese yen to 2.8837/8870 from 2.8690/8739 at Tuesday's close, weakened vis-a-vis the British pound to 5.7230/7291 from 5.7088/7183 yesterday, and fell versus the euro to 4.9586/9639 from 4.9512/9594.
The local note was also easier against some regional peers.
It was flat against the Indonesian rupiah at 259.1/259.5 compared with 259.1/259.7 at yesterday's close.
However, it slid vis-à-vis the Singapore dollar to 3.3071/3109 from 3.3011/3071 on Tuesday, depreciated versus the Thai baht to 13.1370/1567 from 13.0899/1172 previously, and inched down against the Philippine peso to 7.42/7.44 from 7.41/7.43. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
21 minutes ago
- The Star
US, EU trade talks boosted by Trump's agreement with Japan
FILE PHOTO: Stacked containers and cranes are shown at the Port of Los Angeles in Los Angeles, California, U.S., November 22, 2021. REUTERS/Mike Blake/File Photo BRUSSELS/WASHINGTON (Reuters) -The European Union and the U.S. are heading for a potential trade deal that includes a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday, potentially moving President Donald Trump closer to securing another major trade agreement hours after he unveiled one with Japan. European negotiators were hoping to reach an agreement to dodge the 30% tariff rate Trump has said he would impose on imports from the 27-nation blocon August 1. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan, which Trump announced late on Tuesday. The deal could include exemptions for some EU goods, the diplomats said. As talks continued, the European Commission said it would press on with potential counter-measures in case a deal was not reached. EU member states were set to vote on 93 billion euros of counter-tariffs on U.S. goods on Thursday, European diplomats said. A broad majority of members support using anti-coercion instruments if there is no deal, they said. Trump was hoping for a boost from the complicated deal reached with Japan, the largest foreign investor in the U.S., which included a $550 investment and loan pledges from Japan and its commitment to buy 100 Boeing airplanes and boost purchases of U.S. agricultural products. Tariffs on Japan's auto sector will drop from 27.5% to 15% as part of the agreement, reviving hopes for a similar deal for EU cars. Asian and European stock markets rallied as investors cheered that agreement, but U.S. stocks showed a more modest rise and earnings reports were gloomy. U.S. businesses making everything from chips to steel reported downbeat results on Wednesday, revealing how the Trump administration's chaotic trade policy has hurt profits, added to costs, upended supply chains and weighed on consumer confidence. Trump said late on Tuesday that other countries would be coming for talks this week and governments were scrambling to close trade deals before next week's deadline that the White House has repeatedly pushed back under pressure from markets and intense lobbying by industry. AUTO TARIFFS Automobile stocks led the climb of European shares after the Japan deal spurred hopes that the U.S. was budging over tariffs on EU cars. EU officials have previously said Washington has shown little sign of doing so. U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg Television that Japan received the 15% rate on auto tariffs "because they were willing to provide this innovative financing mechanism" that he did not think other countries could replicate. Trump, however, has appeared open to a range of options as the U.S. negotiates trade deals. "I will only lower tariffs if a country agrees to open its market," Trump wrote in a social media post on Wednesday. In addition to talks in Washington, the European Trade Commissioner Maros Sefcovic planned to speak with U.S. Commerce Secretary Howard Lutnick on Wednesday from Brussels. (Reporting by Philip Blenkinsop in Brussels and Trevor Hunnicutt in Washington; Additional reporting by Bhargav Acharya and Susan Heavey; Writing by Doina Chiacu; Editing by Paul Simao)
New Straits Times
an hour ago
- New Straits Times
PM: Tokenisation and digital assets must benefit all
KUALA LUMPUR: The government will continue to ensure that the implementation of tokenisation and digital assets is inclusive, said Prime Minister Datuk Seri Anwar Ibrahim. In a post on X last night, the Prime Minister said the implementation would also deliver broad benefits to the people and be strictly regulated to ensure the safety and stability of the country's digital ecosystem. Anwar, who is also the Finance Minister, chaired the second Digital Assets and Artificial Intelligence Advisory Council meeting of the year today, which focused on the future of digital assets in Malaysia's capital market. "Among the main agenda items discussed were developments in blockchain technology, tokenisation, post-quantum cryptography, and the launch of the Malaysia Blockchain Infrastructure (MBI), which is a key driver of the nation's digital ecosystem." "This meeting also served as a platform to exchange views on global market trends, the potential of digital assets, and future performance expectations based on technical perspectives from strategic partners," he added. On May 6, the Malaysian Securities Commission issued a consultation paper to gather public feedback on the proposed framework for tokenised capital market products. The paper seeks input on key areas including governance controls, record-keeping and registration requirements, technology risk management, and additional requirements for licensed individuals dealing with tokenised capital market products.– BERNAMA
BusinessToday
2 hours ago
- BusinessToday
Zafrul: ASEAN At ‘Pivotal Moment' To Secure Global Semiconductor Leadership
Malaysia is set to leverage the upcoming ASEAN Semiconductor Summit (ASEMIS) 2025 to advance the ASEAN Framework for Integrated Semiconductor Supply Chain, strengthening the region's role in global technology security, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the world is at a critical juncture, with semiconductors becoming indispensable across multiple industries, and ASEAN is uniquely positioned to rise as a global hub. 'With a growing number of industries requiring semiconductors as key components, ASEAN is at a pivotal moment in history where it has not just the capacity, but also the strategic neutrality, to strengthen its positioning as the world's leading hub for semiconductors. 'I am confident ASEMIS 2025 will forge greater cooperation between the public and private sector which will enhance the already strong growth momentum of the semiconductor industry across the region,' he said in a statement today. The inaugural summit, themed 'Shaping the Future of ASEAN's Semiconductor Industry', will be held tomorrow in Petaling Jaya. Organised by the Ministry of International Trade and Industry (MITI) in collaboration with the Malaysian Semiconductor Industry Association (MSIA), the one-day event aims to position ASEAN as a leading global hub for semiconductor manufacturing, technological security and innovation. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to deliver a keynote address. The summit will gather 500 participants, including policymakers, economists, industry analysts, sovereign fund representatives and corporate leaders from across ASEAN and Asia. MSIA president Datuk Seri Wong Siew Hai said the event would offer delegates opportunities to connect with key decision-makers and industry captains, facilitating collaborations that can drive ASEAN's competitiveness. 'We are pleased to partner with MITI in organising ASEMIS 2025 for stakeholders to network, gain strategic insights, and help curate the future of the semiconductor industry in ASEAN,' he said. The programme will also feature a panel discussion with industry association leaders from Malaysia, Singapore, the Philippines, Thailand and Vietnam, focusing on public-private partnerships and deeper regional cooperation. Related
